Transgrid raises remote REZs as part of energy transition vision

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Remote inland renewable energy zones (REZs) have been identified by Transgrid as a potential source of the additional renewable power it predicts will be required to meet the needs of a rapidly electrifying economy and a decarbonising grid.

Coal currently dominates New South Wales’ (NSW) electricity generation but it is expected to supply less than 20% of the state’s power by 2033. Transgrid, which operates and manages the high-voltage electricity transmission network in NSW and the Australian Capital Territory, has forecast renewable power capacity may need to expand by up to three to five times by the end of the decade to support the ongoing electrification of industry, transport and households.

In the latest edition of its Transmission Annual Planning Report (TAPR), Transgrid predicts steadily increased annual growth in demand for electricity across NSW over the next decade. The network operator also anticipates substantial volatility in power flows, increases in peak demand, and a sharp decline in minimum grid-supplied demand.

Offshore wind was expected to play a role in addressing these challenges but Transgrid Chief Executive Officer Breet Redman said with the timing of its introduction in NSW uncertain, there is a real need to plan for a situation where energy security is not reliant upon it.

“We are therefore planning for a scenario where offshore wind does not play a critical role in preserving the security of the NSW system,” he said, adding that “remote inland REZs are emerging as a more likely source of additional renewable power in the mid-2030s.”

The NSW government is already progressing the development of five coordinated REZs across the state as part of its plan to bring 12 GW of renewable energy and 2 GW of storage online by 2030.

Transgrid has however now identified sites at Broken Hill and Noona in western NSW, and the northwest region of the state as potential locations for remote inland REZs to be developed as it seeks to support a stable and reliable renewable grid.

While acknowledging that a portfolio of remote inland REZs would require substantially more transmission infrastructure than expanding existing NSW REZs, Transgrid said the locations offer “excellent solar and wind resources on under-utilised, low-density land.”

“The high capacity factors and favourable solar-wind correlations, present an opportunity to diversify generation supply in NSW,” it said.

Transgrid also said it is looking at ‘non-network solutions’ to help maintain a reliable energy system, saying they would help minimise the need for additional poles and wires.

The modelling suggests that up to 14 large synchronous condensers and contracts with a range of non-network proponents, including up to 5 GW of grid-forming batteries, will be required to provide sufficient system
strength support to NSW within the next decade.

Redman said the forecasts from the TAPR demonstrate the challenges posed by an electrifying economy and the need for governments, regulators and industry to adjust to the new realities of a much larger and more complex network.

“Building this grid will only be possible with close and ongoing collaboration between many different government and industry entities,” he said.

“Everyone is aware of the need to progress priority transmission projects urgently to deliver the necessary high-voltage backbone through NSW to significantly increase transfer capacity within NSW and with the eastern states.”

“However, we also need evolving regulation to support the broader realities of the energy transition, including the critical task of maintaining a strong heartbeat for the system throughout and following the transition.”

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